The weekly open was holding strongly until we hit the afternoon portion of the New York session when sellers hit the market with force! GBP/USD eventually dropped a solid 70 pips before settling at the 1.6050 level.
I have been posting recently on the 88.6% fibonacci retracement level. It is a less common number than the widely used retracement levels of 38.2%, 50.0% and 61.8%. Nonetheless, this 88.6% holds a better risk/reward ratio. For GBPUSD, last friday’s downward move retraces near to the 88.6% of 1.6000.
If there are no significant gaps on monday opening, i am planning to go long. Stop loss is below the previous swing low of 1.5975.
Long near 1.6000-10
Stop loss below 1.5750-60
First target profit 1.6100
Second target profit 1.6180
Another day of consolidation then a break lower during the NY session! Those triple zeroes at 1.6000 held pretty well though!
If you were courageous enough to take that bullish divergence signal early in the Tokyo session, you could have earned yourself a smooth 50 pips!
The first half of the day was absolutely boring, but then risk aversion kicked in and took GBP/USD down for a sharp drop! Playing the break of 1.6000 would’ve turned out to be an day trade.
Hopping on the retest of the daily open would have been the only way to catch the smooth 100-pip rally during the London session!
We saw a nice little breakout above the PDH in the Tokyo session that extended well into the New York session thanks to UK’s better-than-expected GDP report. That move alone was worth about 90 pips, son!
Pretty quiet day for Cable, as the pair pretty much stuck within range. Scalpers could have made a killin’ playing that 1.6100 level though!
All we saw on GBP/USD was a slow and gentle slide that began at the day’s opening price and didn’t end until the end of the New York sesh.
Pretty quiet day for Cable, as we barely got any reports, not to mention U.S. traders were out thanks to intense rains. I hope all my homies are safe!
We witnessed a nice little Asia box play as GBP/USD broke out of consolidation midday, rallying to just below the previous week high (PWH) to end the month. Classic!
Aside from another example of the Asian box, price action was pretty choppy on this day, as Cable didn’t really shoot off for any new significant high or low.
Another bearish day for the pound! We could’ve caught a good chunk of the sell-off if we had jumped on the bandwagon as the pair broke and retested the confluence zone around 1.6100 when a bearish divergence formed.
A little gutsy, but if you played the break and retest of the PWL, you would have taken home some decent pips!
Not much action on this day! GBP/USD was confined to a tight 25-pip range between the 1.6000 handle and the DO. Boooring! Blame it on the US elections!
Cable rallied hard when it was announced that Barack Obama got re-elected, but soon the pair dropped as risk aversion took over. If you had taken that bearish divergence signal at the day’s highs, you would have gone home a happy trader!
The BOE rate statement didn’t turn out to be a dud - it brought GBP/USD back to life and sent price up 50 pips!
Here’s a clear example of why you should always mark out the week open! It held like a champ and Cable dropped all the way down to the 1.5900 handle!
Without any reports from the U.K. and U.S., GBP/USD was all over the place! It didn’t show much interest to the day open/week open and previous week low/previous day low confluence zones either!
Cable pretty much stuck in range this day, so if you just sold or bought at the previous day low or high you would have made decent change!
